[Everything doTERRA] Preferred Member - queries

Hi

I've asked a question before about the preferred member, but rather
than asking a new question in that old topic, I'm starting a new one -
as I don't think the old topic will be noticed much.

I am really, really confused with the preferred member (PM). The
general idea is okay, but the technical details i.e. the maths! is
hard to grasp. Especially as I'm trying to work out the benefit of
having a PM (Spa) underneath a IPC (Spa Owner), as opposed to the IPC
(Spa Owner) just buying everything under his/her membership.

That's a point that I'll come back to, once I've worked on a
spreadsheet for the complicated maths...

But I want to start out with a question -

I read that the PM pays "20% below retail". Is that calculated as
retail price - 20% or wholesale price + 5% (assumed on the basis that
normal retail is about 25% above wholesale, so PV is about 5%)

Thanks

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